Fryingpan-Arkansas Project update: Reclamation is on board with compromise for the spending of project revenues

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From The Pueblo Chieftain (Chris Woodka):

The plan pays off the South Outlet Works connection to Pueblo Dam, about $2 million, using revenues from 2010-11 this year, and begin paying down federal debt on the Fountain Valley Conduit and Ruedi Reservoir next year. During that time, the groups will work on a mutually acceptable plan for future years…

The new plan backs off the Southeastern’s insistence that Arkansas River basin parts of the project be paid down before Ruedi, a compensatory storage reservoir for the Western Slope above Basalt near Aspen…

The South Outlet Works delivers water from the Pueblo Dam to the Pueblo Board of Water Works, Fountain Valley Authority, Pueblo West and the future Arkansas Valley Conduit. Payment of the debt on the South Outlet Works benefits Pueblo water customers, who otherwise would have to pay about $169,000 a year over the next 12 years. More than $52 million is owed on the Fountain Valley Conduit, which serves Colorado Springs, Fountain, Security, Widefield and Stratmoor Hills. Payments for those users total $5.6 million a year, through property tax assessment. More than $32 million is owed on Ruedi, and interest payments increase the amount by $2 million annually. The reservoir was built larger than necessary at the request of Western Slope interests, and the large debt is a result of unused accounts at the reservoir.

More Fryingpan-Arkansas Project coverage here.

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